The bill amends Chapter 31-5.1 of the General Laws, which regulates business practices among motor vehicle manufacturers, distributors, and dealers. A significant addition is the new section on dealership survivorship, allowing designated family members of deceased or incapacitated dealership owners to inherit ownership under specific conditions. The bill also extends certain protocols applicable to motor vehicle manufacturers to their distributors and factory branches, enhancing the obligations of manufacturers and distributors to notify existing dealers about the establishment or relocation of dealerships, enabling affected dealers to voice their concerns.

Furthermore, it outlines the delivery obligations of manufacturers and mandates fair compensation for dealers regarding labor and parts, particularly in warranty agreements, with a minimum claim submission period of ninety days. The bill establishes a comprehensive framework for compensation related to recalls, warranty repairs, and service actions, ensuring that dealers are compensated at their retail rates. It prohibits manufacturers from imposing excessive requirements on dealers for setting retail rates and prevents them from recovering costs through price increases related to warranty reimbursements.

The legislation sets clear timelines for claim approvals, automatically approving claims not addressed within thirty days. New obligations during recalls include compensation for labor and parts, and the bill clarifies liability for damages during transportation. All agreements between manufacturers, distributors, and dealers will be subject to these regulations, with the act scheduled to take effect on October 1, 2026.